Daily Update
Mark Carney talked about how financial stability is important in the face of uncertainty. His talks were particularly aimed at carbon emissions and companies responsible for it. However the speech did not have any positive impact on GBP. The US monthly retail sales that was released in the afternoon, showed barely any growth of 0.1% in November, as compared to 0.3% expected and 0.6% registered in October. Industrial production report from Euro Zone failed to give any positive boost to EUR as it failed to meet the expected levels. However as expected, the Fed hiked interest rates by 25 basis points to 0.50%-0.75% from 0.25%-0.50%. The FED expects GDP to grow 1.6% in 2016, 2.1% In 2017 and 1.9% in 2019. The unemployment rate is projected to run around 4.5% during the next three years. Fed Chair Janet Yellen sounded more hawkish during the press conference. Even though the market is performing well after Trump’s election, all signals indicate lack confidence. She abandoned the case for 'running a high pressure economy' and indicated that the Fed has not fully taken Trump s fiscal plans into account. Australia’s Unemployment rate report was released early in the morning. It went over the expected level of 5.6%, by reporting 5.7%. Clearing reflecting negatively on the Australian economy. Following Next, The Swiss National Bank’s interest rate decision will focus on price stability while maintaining the country’s rate of economic development. This will be followed by several reports on consumer price index for several fields from USA. These reports should provide a clear indication to measure inflation and changes in purchasing trends in USA. The day will end with Stephen S. Poloz’s speech, the Governor of the Bank of Canada. Like last month’s speech, where he talked about how well the Canadian service sector is doing, his talk is expected to have a positive impact on the CAD.Yesterday's Market
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By Mid-day, The minutes of the BOE meetings will be published alongside with the committee decision. Generally speaking, if the BoE is hawkish regarding the inflationary outlook for the economy, then the market sees a higher possibility of a rate increase which will affect the GBP positively. Considering that the GBP has been on the rise for the last few days, hence an upward trend is expected.
Mid evening will be filled with reports from USA. Firstly, jobless claims which measure the number of individuals who are unemployed and are currently receiving unemployment benefits will take place. Next up will be Initial jobless claims, which is a measure of the number of people filing first-time claims for state unemployment insurance of which both reports presents the strength in the US labor market.
